Price: $85,000 – Weekly Sales: $7,554
This listing is for a Mission tortilla distribution route with a price of $85,000. The owner distributes a variety of tortilla related products to major grocery retailers including Safeway, Target, Grocery Outlet, Bel Air and more. The accounts are located in Rocklin, CA. The storage facility for product is in Sacramento (Natomas). The 16 foot box trucked used on the route now is also included in this purchase. This is a 100% turnkey distribution route opportunity.
The route is currently averaging approximately $7,554 per week in gross sales volume. The route generates approximately $1,300 per week in gross commissions based on an average 17%-18% commission rate. Products have varying commission rates depending on the product category and customer.
The distribution rights and protected territory are purchased through the current route owner and contracted through the product manufacturer. This is a turnkey wholesale distribution route opportunity with consistent sales volume and support from a number one selling food manufacturer. Full training will be provided.
WHAT ARE THE DAILY RESPONSIBILITIES OF THE ROUTE OWNER?
The route owner is responsible for servicing their customer base and ensuring that product is well stocked and maintained for the consumer. Route owners will order, deliver and stock product accordingly. The current owner only works four days per week. They currently run two long days (roughly 16 hours) but the other two days are much shorter (roughly 4 hours). The hours and days themselves are very flexible as long as the accounts are serviced properly.
GROSS EARNINGS/COMMISSIONS
This route is currently averaging approximately $7,554 in weekly sales volume. With an average commission rate of 17%-18% the owner generates approximately $1,300 per week in gross commissions. The sales volume can be confirmed through sales reports/invoices. Sales reports and other information can be provided once we receive an NDA submission.
OPERATING COSTS
Typical expenses include fuel/gas, vehicle insurance, vehicle maintenance, commercial liability insurance (often added on to vehicle policy) and handheld/printer/warehouse expenses. Currently the route operators cover all of their own operating costs. If a new owner wanted to run one of the routes then the current owner estimates $300 per week per route in operating expenses. Operating costs will vary from owner to owner depending on a variety of factors.
GROWTH POTENTIAL
There are display opportunities and the potential for more space in stores that is not being maximized with the current route operator.
Nearly every route has growth potential both within the current accounts or by adding new customers to the route. The route owner can work with current accounts and company managers to maximize sales volume. New accounts such as independent grocery stores, restaurants, schools, hospitals and other accounts could potentially be added to the business as well. The company sales managers do provide support with these growth efforts.
FINANCING
No financing is available through the company or owner
VEHICLE AND OTHER EQUIPMENT
Current 16 foot box truck is included
TRAINING
The current owner has agreed to provide training to the buyer. In addition to training from the current route owner, the company will provide some assistance when possible and will always provide administrative/sales support. The manufacturer wants their route owners to be successful so you will have a solid support system behind you.
SCHEDULE
The current route owner works four days per week and approximately 40 total hours. Days and hours are relatively flexible as long as the accounts are being taken care of. Most deliveries need to be made in the morning or early afternoon hours.
Owning a route means that you are an independent owner/operator/contractor. You are ultimately responsible for the success of the route operation and you will need to find route coverage if you are sick or on vacation. Most route sellers and existing owners have a coverage person whose contact information they can share. Otherwise you are free to train someone to run your route while you are unavailable. It can require some effort and coordination to setup time off…but it does provide a lot of flexibility once you have a person or two that can cover your route operation when requested.
PURCHASING PROCESS AND REQUIREMENTS
Route buyers will have an opportunity to meet with both the current route owner and the management team at the company. You will need company approval to purchase the route. Credit checks and background checks may be necessary as well. Most companies are requiring that route owners have an LLC or corporation so that they are personally separated from the business. The incorporation process is relatively straightforward for most states and can typically be completed through your state’s secretary of state/business registration website.
REQUEST MORE INFORMATION
Our route blog is a fantastic place to find more information on the distribution route business. There are a wide variety of articles including overviews on different types of routes (bread, snack, vending, etc) and others that discuss general route operating topics.
If you are interested in acquiring more information on this route please submit our non-disclosure agreement here. Please note the route number or route location on your NDA submission so that we can send over the correct information.
If you have any other questions please feel free to contact us through this form or by email at Jay@TheRouteExchange.com